Cornering the Market
Posted: Mon Feb 24, 2025 6:52 pm
A member pointed out to me that two airlines, 'Westfalen AIr' and 'A British Virtual Group' currently own most of the aircraft for sale on the market and unlike other airlines, their sale price is 100% the value of the aircraft rather than the normal 90%. Right now the system (FSA Aviation Inc.) owns about a third of the market.
I am not sure if I should be upset about that. It is a free market after all and for their time they are only making a 10% margin on those aircraft. There is a job that runs where the system will buy aircraft that have been on the market a long time, but these two airlines won't benefit from that as the formula the system uses to calculate the probability of a purchase on any give day involves the difference between the aircraft value and price multiplied by the number of days on the market. Since the difference in price is 0% they will never be purchased.
I have on occasion thought someone was trying to corner the market on a given aircraft and I flooded the market with more of that aircraft, but later I just created a job that will add aircraft to the market by looking at the number produced, the number in the system and the number in the market.
You can always place an aircraft order and wait a day or two and get your aircraft at the 90% rate, but that does not help those who go to the market looking for deals.
I am not sure if I should be upset about that. It is a free market after all and for their time they are only making a 10% margin on those aircraft. There is a job that runs where the system will buy aircraft that have been on the market a long time, but these two airlines won't benefit from that as the formula the system uses to calculate the probability of a purchase on any give day involves the difference between the aircraft value and price multiplied by the number of days on the market. Since the difference in price is 0% they will never be purchased.
I have on occasion thought someone was trying to corner the market on a given aircraft and I flooded the market with more of that aircraft, but later I just created a job that will add aircraft to the market by looking at the number produced, the number in the system and the number in the market.
You can always place an aircraft order and wait a day or two and get your aircraft at the 90% rate, but that does not help those who go to the market looking for deals.